Automotive Sector Improves The Better Public Power Purchase

By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST

Chevrolet
Chevrolet

INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.

"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).

Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.

Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.

Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.

Thus, total motorcycle sales from January to August stood at 3.793 million units.

Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.

On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.

"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.

News Comment

Today's Industry

 President Prabowo Welcomes Ustaz Adi Hidayat

Senin, 24 Maret 2025 - 20:39 WIB

President Prabowo Welcomes Ustaz Adi Hidayat, Representatives of Al Azhar University of Cairo at Presidential Palace

President Prabowo Subianto received a visit from Ustaz Adi Hidayat and representatives from Al Azhar University of Cairo at the Presidential Palace, Jakarta, on Friday (03/21). The meeting proceeded…

Jababeka Bizzpark

Senin, 24 Maret 2025 - 20:32 WIB

Jababeka Bizpark Officially Conducted Groundbreaking and Ready for Handover in 2025

AFTER receiving extraordinary interest from foreign and domestic businessmen and investors, Jababeka finally officially conducted the groundbreaking of the Jababeka Bizpark multipurpose commercial…

PT Jababeka Infrastructure (KIJA)

Senin, 24 Maret 2025 - 20:27 WIB

Jababeka Industrial Estate (KIJA) Wins Green PROPER Award from the Ministry of Environment and Forestry for Two Consecutive Years

PT Jababeka Tbk, through one of its subsidiaries PT Jababeka Infrastruktur as the manager of the Jababeka Industrial Estate, has again been awarded the 2024 Green Corporate Performance Assessment…

HOKI Successfully Records Sales of IDR 1.29 Trillion in 2024

Senin, 24 Maret 2025 - 20:19 WIB

HOKI Successfully Records Sales of IDR 1.29 Trillion in 2024

Dailymeal Products Sales Grow 114.05% A well-known rice producer under the brand name 'Topi Koki' listed on the Indonesia Stock Exchange PT Buyung Poetra Sembada, Tbk., (HOKI) managed to record…

Indonesia Showcases High-Quality Fabrics at Intertextile Shanghai: Strengthening Footprint in the International Market

Sabtu, 22 Maret 2025 - 07:25 WIB

Indonesia Showcases High-Quality Fabrics at Intertextile Shanghai: Strengthening Footprint in the International Market

The Consul General of the Republic of Indonesia in Shanghai, Berlianto Situngkir, together with the Indonesia Trade Promotion Center (ITPC) Shanghai, attended the Intertextile Shanghai Apparel…